HomeMy WebLinkAboutPAL Financial StatementsFINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
MIAMI, FLORIDA
TURNER & ASSOCIATN;S, LLP
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS ADVISORS
Southeast Financial Center
200 South Biscayne Blvd., Suite 1770
Miami, Florida 33131
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of •
Miami Police Athletic League, Inc.
Miami, Florida
Telephone: 305-377-0707
Facsimile: 305-377-0787
www.turnercpas.com
We have audited the accompanying financial statements of Miami Police Athletic League, Inc. (a
nonprofit organization), which comprise the statement of financial position as of December 31, 2012
and 2011, and the related statements of activities and cash flows for the years then ended, and the
related notes to the financial statements.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with the accounting principles generally accepted in the United States; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation
of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of Miami Police Athletic League, Inc. as of December 31, 2012 and 2011, and the
changes in its net assets and its cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
September 13, 2013
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STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
2012 2011
ASSETS
CURRENT ASSETS
Cash and cash equivalents $406,914 $209,778
Grants receivable 2,380
Prepaid expenses 97,060 92,478.
Total current assets 503,974 304,636
PROPERTY AND EQUIPMENT, NET 1,356 1,686
Total assets $505,330 $306,322
LIABILITIES AND UNRESTRICTED, NET ASSETS
CURRENT LIABILITIES
Accrued expenses
UNRESTRICTED, NET ASSETS
Total liabilities and unrestricted, net assets
$ 10,481 $ 13,315
494.849 293,007
$505,330 $306,322.
The accompanying notes are an integral part of these financial statements.
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STATEMENTS OF ACTIVITIES
YEARS ENDED DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
2012 2011
REVENUES
LETF Grant $401,729 $100,000
Contributions 66,696 135,350
In -kind donations 418,701 407,760
Interest - 12
Fundraising 3,447 59,732
Program services 20,453 38,332
Unrestricted grants 30,090 12,260
Total revenue
EXPENSES
Program services:
Awards program
Activities and events
941,116 753,446
2,228
563,053 570,947
Total program services 565,281 570,947
Support services:
Management and general 170,038 177,076
Fund-raising 3,955 32,287
Total support services 173,993 209,363
Total expenses 739,274 780,310
Change in unrestricted net assets 201,842 (26,864)
UNRESTRICTED, NET ASSETS, beginning of year . 293,007 319,871
UNRESTRICTED, NET ASSETS, end of year $494,849 $293,007
The accompanying notes are an integral part of these financial statements.
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STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
2012 2011
OPERATING ACTIVITIES:
Change in unrestricted net assets $ 201,842 $(26,864)
Adjustments to reconcile change in unrestricted
net assets to net cash provided by
operating activities:
Depreciation 330 398
Change in assets and liabilities
Grants receivable 2,380 100,000
Prepaid expenses (4,582) (65,580)
Accrued expenses (2,834) 6,539
Unearned revenue - (7,500)
Net cash provided by operating activities 197,136 6,993
Net increase in cash 197,136 6,993
CASH, beginning of year 209,778 202,785
CASH, end of year $406,914 $209,778
The accompanying notes are an integral part of these financial statements.
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NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NATURE OF ACTIVITIES
The Police Athletic League (PAL) started in New York City in the 1930's providing
organized sports activities with police participation and supervision as an alternative
to juvenile delinquency. A not -for -profit organization, PAL is a basic crime
prevention program offering at -risk youth a positive alternative to the negative
influences in the community. PAL relies heavily on athletics and related activities
to create and cement the bond between police officers and the kid in the street
PAL is based on the belief that children can develop a strong, positive attitude
towards police and that police officers can influence the attitudes and values of
children through their interaction.
The Miami Police Department incorporated its own local PAL chapter in December
1995 under the laws of the State of Florida, Miami Police Athletic League, Inc.
(Miami PAL), with a variety of planned programs merging sports and recreation with
good citizenship activities, supplemented by substance abuse education, tutoring,
and career counseling. Miami PAL's diversified activities will provide the opportunity
for every child in the city, regardless of their abilities, to participate.
BASIS OF ACCOUNTING AND PRESENTATION.
The financial statements of the Organization have been prepared on the accrual
basis of accounting.
The Organization follows the recommendations of the FASB Accounting Standards
Codification, (ASC), under statement ASC 958, in its statement presentation. Under
ASC 958, the Organization is required to report information regarding its financial
position and activities according to three classes of net assets: unrestricted net
assets, temporarily restricted net assets, and permanently restricted net assets.
CONTRIBUTIONS
The Organization accounts for contributions in accordance with FASB ASC No. 605.
Contributions, including unconditional promises to give, are recognized as revenues
in the period received at their fair market value. Conditional promises to give are
not recognized until they become unconditional; that is, when the conditions on
which they depend are substantially met. Contributions, which are restricted by the
donor, are reported as increases in unrestricted net assets if the restriction expires
in the same year in which the contributions are recognized. All other donor -
restricted contributions are reported as increases in temporarily or permanently
restricted net assets depending on the nature of the restrictions. When a restriction
expires, temporarily restricted net assets are reclassified to unrestricted net assets.
All contributions receivable are due in less than one year.
Miami PAL receives substantially all of its grant revenue from the City of Miami
Police Department Law Enforcement Trust Fund (LETF). These funds are
recognized in revenue during the period for which they are awarded. Other revenue
is generated from contributions received directly from the public.
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NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
NOTE .1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
DONATED SERVICES
Donated services are recognized as contributions in accordance with FASB ASC
No. 605, if the services create or enhance non -financial assets, or require
specialized skills, are performed by people with those skills, and would otherwise
be purchased by the Organization. Volunteers also provided fundraising and other
services throughout the year that are not recognized as contributions in the financial
statements since these are not susceptible to objective measurement or valuation.
In -kind donations predominantly consist of the use of equipment, facilities and
personnel of the Miami Police Department. The equipment is used to transport the
youth to athletic events and related activities
EXPENSE ALLOCATION
The costs of providing various programs and other activities have been summarized
on the functional basis in the statement of activities. Accordingly, certain costs have
been allocated among the programs and supporting services benefitted.
GRANTS RECEIVABLE
Contributions and grants are recognized when the donor makes a promise to give
to the Organization that is, in substance, unconditional. Management believes that
the grants receivable are fully collectible; accordingly, the Organization has provided
no allowance for uncollectible amounts.
FIXED ASSETS
It is Miami PAL's policy to capitalize property and equipment over $500. Purchased
property and equipment is capitalized at cost. Property and equipment are
depreciated using the straight-line method.
ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
INCOME TAXES
Miami PAL is a not -for -profit organization that is exempt from income taxes under
Section 501(c)(3) of the Internal Revenue Code and classified by the Internal
Revenue Service as other than a private foundation.
NOTE 2 - PREPAID EXPENSES
Prepaid expenses predominantly consist of sports related equipment used in
different youth activities that are generally used within twelve months of purchase.
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NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2012 AND 2011
MIAMI POLICE ATHLETIC LEAGUE, INC.
NOTE 3 - CONCENTRATION OF CREDIT RISK
Miami PAL maintains its cash in bank deposit accounts which, at times, may exceed
federal insured limits. The exposure to Miami PAL from these transactions was
solely dependent upon daily bank balances and the financial strength of the
respective financial institution.
NOTE 4 - FIXED ASSETS
As of December 31, 2012. and 2011, fixed assets consists of:
NOTE 5
NOTE 6
Furniture and equipment
Computer equipment
Less accumulated depreciation
Total fixed assets
2012 2011
$15,030 $15,030
14,243 14,243
29,273 29,273
27,917 27,587
$ 1,356 $ 1,686
- RELATED PARTY TRANSACTIONS
The Company paid $22,315 of wages and consulting fees to a Director of the Board
during 2012.
The Company paid $41,108 of wages to a former Board member during 2012.
- SUBSEQUENT EVENTS
The Organization evaluated subsequent events through September 13, 2013, the
date these financial statements were available to be issued and has determined that
no adjustments are needed to the financial statements.
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